How Much Do Brokers Charge?

Selling a business is a big deal, so it’s natural to want professional help. One of the first questions business owners ask is, "How much do brokers charge?" 

The answer isn’t straightforward. Traditional brokers have different fee structures that can significantly impact how much you walk away with. There’s also the risk of hidden fees, which could chip into the final sale price. 

Let’s break down what a business broker is, the most common fee structures, how they affect your business sales, and how you can flip the script to score a better deal for your small business. 

What Is a Business Broker?

Business brokers are the go-between for buyers and sellers, guiding deals, negotiations, and paperwork in a $1.8 billion industry built on connecting the right people.

But, like any service, traditional business brokers come at a price—sometimes a steep one. Their fees vary, depending on the model they use, and those costs can add up fast.

Commission-Based Fees

The commission-based fee model is the industry standard. Brokers take a percentage of the final sale price, usually 10% to 20%. 

Let’s put that in perspective. If your business sells for $2 million, the broker receives a payout of $400,000. The more your business sells for, the more the broker earns. 

At first glance, this seems fair—brokers are motivated to get top dollar. But in reality, this model can take a serious bite out of your earnings. 

Flat Fees

Some brokers charge a flat fee instead of taking a cut of the sale. This option is more predictable because sellers know how much they’ll owe upfront. 

But there’s a tradeoff. Since the broker’s fee stays the same no matter the final price, there’s less incentive to push for a higher sale.

Retainer Fees

Retainer fees are another common fee model. Instead of waiting for a sale, brokers charge sellers upfront, often monthly, before a buyer is even in sight. Fees can range from a few thousand dollars to tens of thousands, depending on the broker and the complexity of the sale. 

This model can be risky, as sellers pay significant fees even if their business doesn’t sell. Retainer fees are common among brokers who aren’t confident they can close a deal—they get paid either way.

Success Fees

Some brokers tack on success fees as an extra charge at the end of a successful sale. In some cases, extra services or tough negotiations might justify the cost. But too often, it feels like an unnecessary add-on that drives up the total price—especially if the broker wasn’t upfront about it.

The True Cost of Using a Traditional Business Broker

Partnering with a business broker often means paying more than commission or success fees. Many brokers stack on extra charges, which further reduce profits. 

Breakdown of a Typical Broker’s Fees

When you combine commission-based fees, potential retainer costs, and success fees, the total cost of a traditional broker quickly grows beyond reasonable expense. 

Say you sell your business for $1 million at a 20% commission, that’s $200,000 gone. Now factor in hidden costs. You could easily lose a third of your sales price by paying the broker. 

Additional Costs Sellers May Face

Besides the direct fees, watch out for extra costs that can chip away at your profits:

• Marketing and advertising fees: Some brokers ask sellers to pay separately for listing and marketing. Strong marketing is essential to attract more buyers and better offers. Without marketing, you might be forced to settle for a low sale price because there are no higher offers. 

• Legal and valuation costs: A proper business valuation and professional legal and financial services to double-check contracts isn’t cheap but it’s critical. Without these services, you risk signing a bad deal or selling for far less than your business is worth. 

• Hidden or unexpected charges: Many brokers operate independently and add surprise charges for miscellaneous services, like extra negotiations or even basic paperwork. If the broker isn’t upfront about these charges from the get-go, it can be a nasty shock when closing the sale. 

Baton Market’s Transparent and Cost-Effective Model

So, how do sellers survive in this competitive and sometimes exploitative environment? They turn to Baton Market. 

Baton Market eliminates unnecessary costs and offers a more efficient, seller-friendly approach—completely revolutionizing the selling experience for business owners. 

How Baton Market Eliminates Unnecessary Costs for You

Baton Market uses technology to gather data and streamline the selling process, offering sellers a more cost-effective and transparent way to sell.

But how exactly does Baton Market help?

• Flat, predictable pricing: Unlike traditional brokers, Baton Market offers clear and predictable pricing. Baton has a 6% success fee, less than half that of traditional brokers. Our $1000 monthly fee is included in the success fee, guaranteeing you the best possible deal. 

• No large commission percentages: Instead of taking a massive percentage of your sale price, Baton Market offers an affordable pricing structure so you keep more of your hard-earned profits.

• Technology-driven efficiency: With smart, algorithm-based valuations and automated buyer matching, you spend less time on manual buyer matching. Baton market brings targeted and pre-authorized buyers straight to you, closing deals 50% faster than traditional brokers. 

• Better value for small and medium-sized businesses: For businesses under $10M in valuation, Baton Market is the affordable and effective alternative to traditional brokerage fees. Maximize your profits without sacrificing service quality.

Keep More of Your Profits With Baton Market’s Transparent Pricing

Selling a business is stressful, time-consuming, and emotional. Or, it used to be with traditional brokers. Traditional brokers can take up to 20% of the final sale price in commissions and pile on hidden fees that chip away at your profits. 

But here’s the good news. You don’t have to settle for a low asking price or a lackluster brokerage partner anymore. Not when you have Baton Market. 

Baton Market delivers transparency, expert support, and tech-driven efficiency—-everything you need to sell your small business faster and for more! 

Get started with Baton Market today!